RJI shareholders approve funding

Press, 12 September 1987, Page 31

RJI shareholders approve funding

PA Wellington Robt Jones Investments could raise $lOO million this year through a new funding arrangement to help in purchasing property. Shareholders yesterday approved a proposal allowing directors to issue redeemable preference shares with options attached to various New Zealand financial institutions over the next year.

The preference shares would be issued in large parcels of around $2O million, although the minimum parcel is $1

million, Robt Jones managing director, Mr David Moriarty, told shareholders. One shareholder asked if the new scheme meant there would be no shares issued in payment for property over the next year. However, Mr Moriarty said now the company’s share price was firmer, directors would consider issuing further shares with the usual lock up or trading restrictions on them. Yesterday’s resolution allows up to 40 million options in Robt Jones In-

vestments to be issued with the preference shares. These options, when exercised, will provide one ordinary share of 10c in the company at a price based on average market value. Directors have stipulated these options can only be exercised on specified dates three to five years from the granting of the options and only in blocks of 250,000. The funds received when the options are exercised will ultimately be used to redeem the preference shares.